Kernel ‘aggressive’ with IPTs despite Ukraine concerns

By Lewis McLellan

10 Oct 2019

Kernel, a Ukrainian agricultural producer, hit the market on Thursday with a five year non-call three year. In spite of fears around Ukraine’s future relationship with the IMF, the leads have set initial price thoughts at a level onlookers are calling “aggressive”.

ING and JP Morgan are running the books for the deal — a Reg S/144A bond aiming to raise between $300m and $350m. Initial price thoughts were set at 6.75% area.

“That’s a pretty small concession at IPTs,” said a banker away from the trade. “The
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